Rental Finance FAQ’s

What is Rental Finance and Why Rent when we can buy?
Instead of paying for your lighting technology outright, you can choose to rent them for fixed monthly payments over 24, 36 48 and 60 months terms to suit your budget.

How much deposit do I need to get started?
A Rental Agreement does not require a deposit payment, so subject to your Rental Agreement being approved, you can start renting based on the agreed payments.

Under a Rental Agreement, does the rental payment change with changes in interest rates?
A Rental Agreement is a fixed payment obligation, therefore once you are approved and your Rental Agreement begins, the rental payments will be fixed throughout the term.

What interest rate am I paying under the Rental Agreement?
Under a Rental Agreement, because you rent the use of the equipment for the term of the agreement there is no interest rate as you would find with a loan or credit card. This means that the rental payments may be a tax deductible operating expense for your business or business use purposes*.

During the Rental Agreement, what happens if I want to add additional equipment?
Provided you are making your rental payments and your financial circumstances continue in good standing, a Rental Agreement enables you to add additional equipment at any point throughout the agreement.

What are the advantages of taking out a Rental Agreement for equipment if I can spend the cash to own it today?
Rental finance enables you to preserve your valuable cash so you can invest it in other parts of your business. If you normally buy your assets through bank funding, then renting enables you to preserve your undrawn bank lines for any emergencies or opportunities when you need cash fast.

What are my payment obligations?
The rental instalments are payable monthly depending on the payment period in your Rental Agreement. The rental payments are shown inclusive and
exclusive of GST. As rental payments are a fully deductible operating expense you may be entitled to a tax deduction and or an input tax credit (confirm with your independent tax advisor*).

Who is responsible if the equipment is lost, stolen or damaged?
As the operator of the equipment, you will typically retain and bear the risk of accidental loss or damage to the equipment anywhere in Australia. You should always maintain insurance for the equipment to protect against the risk of
accidental loss or damage to the equipment.
What happens if I want to upgrade to newer
equipment before my rental term expires?
You can contact Nexgen and provide
us with the details of the new equipment you are
looking to upgrade to and we can assist in rolling
some or all of your existing rental obligations
into a new Rental Agreement. The proposed
term of the new rental together with where you
are at with your existing Rental Agreement will
determine what your new rental payment will be.
During the Rental Agreement, what happens
if I want to add additional items?
You can contact us and we can make a quick
assessment of your financial position and notify you
of the new amount that you can finance. We will
issue you a variation agreement to enable you to add
the new equipment to your existing agreement.
I’m a self-employed sole trader.
Are FlexiCommercial leasing
agreements available to me?
Nexgen financing is available to all businesses,
including sole traders with a registered ABN who
will be using the equipment for business purposes
only. To qualify for Nexgen financing, your
business will also need to have an established
trading history, usually of more than 2 years. As
a sole trader and director of your business, you
will also need to have a clear credit history.
How is FlexiCommercial
different to a bank loan?
While banks will often issue a loan for the purchase
of equipment, with Nexgen your business is
paying a monthly fee for the use of the equipment,
not making loan repayments. This means that the
equipment are not counted as an asset on your
company balance sheet, which can have different
implications to the way your business accounts
for its expenditure. Speak with your business
financial advisor to get a full understanding of
which is the right option for your business.
Under a Rental Agreement, does
the rental payment change with
changes in interest rates?
A Rental Agreement is a fixed payment
obligation, therefore once you are approved
and your Rental Agreement begins, the rental
payments will be fixed throughout the term.
Can I upgrade or modify the equipment
to improve its performance?
If you want to modify the equipment to improve
performance, you must receive our written consent.
Please notify us before hand by phone or in writing.
What happens if I can no longer
meet my payment obligations?
If you are having difficulties meeting your payment
obligations, you can contact the Nexgen Equipment Rentals
team on 1300 763 738 to discuss your options.